BoJ Joins ECB And Fed On Unlimited Print Train

Tyler Durden's picture

Just as some do not believe in Santa, Christine Lagarde appeared to comment that she does not believe in currency wars (or competitive devaluation) this morning but sure enough, just a few hours later, Reuters rumors that the BoJ is about to join the Fed and ECB on the open-ended infinite print train. Sure enough, JPY is dumping (breaking recent highs on a stop-run), stocks are responding in their correlated carry way, and precious metals are surging (Silver +4.6% on the week) as fiat floods the world. It appears 2013 is the years of last last resort as the G-20 meme seems to be "if we can't reflate now, then it's all over." What is perhaps remarkable about the equity response is that everyone has known for two months that Japan plans on implementing a 2% inflation target. The only question has been "how" - and that it is only logical that the BOJ would use 'whatever means everyone else has used' - today merely confirmed this - knee-jerk algo response or sell-the-news? 



JPY dumping (higher is weaker vs USD in the chart)...


S&P 500 futures surged in their correlated fashion as JPY crosses all went risk-on...


and Gold surged...


Gold now leading the S&P since 1/3/13... +1.88% vs +1.36% from 01/03/13 close

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francis_sawyer's picture

Catfood bitchez! [go long]...

CPL's picture

When that runs out.


Catch-22's picture

Printing  =  Inflation  =  Horse in Hamburgers…


Horse in beef: 
Tesco apologizes and refunds

While horse meat was found in beef steaks in Britain and Ireland, the UK distributor has issued an apology in the press. Tesco will reimburse customers.




busted by the bailout's picture

Horse in Hamburgers…

Don't worry about it; chain-weighted inflation has it covered.

francis_sawyer's picture

I'll have the 'Secretariat' burger with a side of 'Sea Biscuits' please...


Edit: Junks?... That was funny as shit!

francis_sawyer's picture

**ck you & the HAMBURGER you rode in on...


Now THAT was funny!

Orly's picture

It's a stretch but the "rode in on" wins by a nose.




Now THAT was funnier-er!

Flakmeister's picture

A good a place as any:

By Matt Taibbi Secrets and Lies of the Bailout

... To guarantee their soundness, all major banks are required to keep a certain amount of reserve cash at the Fed. In years past, that money didn't earn interest, for the logical reason that banks shouldn't get paid to stay solvent. But in 2006 – arguing that banks were losing profits on cash parked at the Fed – regulators agreed to make small interest payments on the money. The move wasn't set to go into effect until 2011, but when the crash hit, a section was written into TARP that launched the interest payments in October 2008.

In theory, there should never be much money in such reserve accounts, because any halfway-competent bank could make far more money lending the cash out than parking it at the Fed, where it earns a measly quarter of a percent. In August 2008, before the bailout began, there were just $2 billion in excess reserves at the Fed. But by that October, the number had ballooned to $267 billion – and by January 2009, it had grown to $843 billion. That means there was suddenly more money sitting uselessly in Fed accounts than Congress had approved for either the TARP bailout or the much-loathed Obama stimulus. Instead of lending their new cash to struggling homeowners and small businesses, as Summers had promised, the banks were literally sitting on it.

Today, excess reserves at the Fed total an astonishing $1.4 trillion."The money is just doing nothing," says Nomi Prins, a former Goldman executive who has spent years monitoring the distribution of bailout money.

Nothing, that is, except earning a few crumbs of risk-free interest for the banks. Prins estimates that the annual haul in interest­ on Fed reserves is about $3.6 billion – a relatively tiny subsidy in the scheme of things, but one that, ironically, just about matches the total amount of bailout money spent on aid to homeowners. Put another way, banks are getting paid about as much every year for not lending money as 1 million Americans received for mortgage modifications and other housing aid in the whole of the past four years.

ParkAveFlasher's picture

This is what happens when "money" is reduced to a book entry, and restricted to being essentially valueless except as a physical record / denominator of some far-off exchange.  

This is what happens when you exclude value from a trade intermediary. 

This is what happens when third parties are corrupt.

Sophist Economicus's picture

Yup, this continues to confirm my bias that Tabbi is a shill and doesn't understand rudimentary economics


Prins is a know, self-confessed shill, so no surprises in his remarks

rodocostarica's picture

Yeah and Tiabbi thinks the Tea Party started with Santelli's famous rage piece rather than the Ron Paul Tea Party Fundraiser in December 07. Some good journalistic research.

A. Magnus's picture

Nomi Prins is a WOMAN. If you can't get at least THAT right then the rest of your 'analysis' is questionable at best...

trav777's picture

why TF would the banks (or anyone else) LEND ANYTHING to "struggling homeowners"??!

A struggling homeowner=person in default who doesn't really OWN anything except a big capital loss on a mccrapbox made of particle board.

NO aid to homeowners, NO aid to gd'd banks either

Mentaliusanything's picture

If that $1.4 Trillion ever breaks out into the real World, then Ben's ass is going to pucker tighter than a Fishes bumhole.

It's not something I want to think about, least I start heavy drinking

Its_the_economy_stupid's picture

Goldf surge couldn't be related to the 7 years needed by the Fed to cover Germany's Gold Call.

busted by the bailout's picture

Yes, but it's all pieces of a whole.


hooligan2009's picture

you watch the unwind of all the rehypothecation in the collateral markets over the next three to 2500..well first..then buzz lightyear kicks in

MillionDollarBoner_'s picture

"Christine Lagarde appeared to comment that she does not believe in currency wars (or competitive devaluation) this morning..."

Christine Lagarde does not believe in big fat hairy cocks either...but she sure as hell has got one ;o) 

CPL's picture

Biggest clit you've ever seen with huge meat curtains.

MillionDollarBoner_'s picture

...and its own ecosystem.

It's like a rainforest in there...

Edit: and while we are on it, those are not meatflaps, dude, they are cojones...;o)

francis_sawyer's picture



There ~ fixed it...

Terp's picture

Ok, this went from lol to ewww in three posts.


Well done gentlemen...

pods's picture

Wow CPL that one was quite visual.

In fact, I had to see how a normal person would react so I copied it and sent it to Mrs. pods.



hooligan2009's picture

along the lines of "show us your growler" and other un PC things I have heard people shout at strip other people told me they heard people shout I mean

semperfi's picture

Which one is going to be the first to go Zimbabwe and print a $100Trillion note ???  Bets ?

CPL's picture

Japan, they are almost there already.

hooligan2009's picture

japan is about to print its first quadrillion of yen debt...worth less than (non) radio-active toilet paper, but there you go

francis_sawyer's picture

Doesn't work that way in this system...


Can't you see?... The mythical "$100 Trillion Note" is just 100 electronic entries of $1 Trillion dollars each [which then, the PD's hold on deposit at the Fed & collect interest off of]... Then ~ they incrementally divvy it up amongst their cronies, who venture out in the world and buy up all the PHYSICAL STUFF they can find...

When the last atom of "stuff" has been procured [in a race with the Chinese who are doing the same]... Then the game is over...

Your only interest in the game is to decide what kind of 'special sauce' is needed to make your catfood taste like a gourmet meal...

Cognitive Dissonance's picture

"BoJ Joins ECB And Fed On Unlimited Print Train"

That would explain the sudden woodie in Gold and Silver.

MillionDollarBoner_'s picture


The IMF has principles?!?


Sudden Debt's picture

yes they do!

Principle 1: take care of your own
Principle 2: your own will take care of you
Principle 3: don't have more than 3 principles.

SAT 800's picture

Actually, I think principle number three is "never piss in your wastebasket when you can use your neighbors"; but I agree with you "in principle" !

hooligan2009's picture


(his new job probably)

Sudden Debt's picture

I just sold my gold calls for a nice 45% profit :)

let's not forget that tomorrow it's the 19th... option exp. day.

MillionDollarBoner_'s picture

Dude...tomorrow is the 18th where I'm sat and OpExp is on the 26th.

Or is I crayzee?

CPL's picture

On the other side of the world it is always the next day.


mind = blown

Orly's picture

Or, as my brother would say, "It's five o'clock somewhere."

SAT 800's picture

I just covered my Jap. Yen Short contract for 5312.50$; for one contract ! The thing was on there for a month; I probably should have left it. Pray that Silver gets back above $33 SOON; i'm sitting on a Mar.'contract for $33 and change; LONG ! And I'm feeling the pain. Yours. Mine. Everybodys. Ouch. Come on somebody buy some silver, it's good for you.